1. Japanese Department Store : A Failure in Globalisation Rika Fujioka fujioka@osaka-ue.ac.jp 1

2. Globalisation of Retailing A few successful retailers in globalisation 2 Sales rank Ratio of overseas store Ratio of overseas sales Countries of operation Mitsukoshi(Japan)6335.7%1.4%7 Eaon (Japan)171.1%11.2%4 Muji (Japan)-29.6%11.9%15 Wal-mart(US)143.0%24.2%13 Carrefour(France)278.5%54.2%26 Tesco (UK)443.6%24.0%13

3. The Early Development Late 19 th Century Vanguard of Foreign Trade in Japan Import Western Products Trade Textile Products Early 20 th Century Transform them into Department Stores Catch Up with European Stores 3

4. Declining Sales during WW Ⅱ Consumer demand Little merchandise Clerks been inducted Limited sales area 4 Table 1: Total sales of All department Stores (thousands of Yen)

5. Activities in Manchuria Tap New Growing Market ‘Gaisho’ Department and Trading Department Meet the Demands of Japanese Army and Concern in Manchuria. 5

6. Mitsukoshi’s Development Open a Branch In Seoul in 1906 In Dalian in 1928 Rely on Sales in Overseas Branches Store (7500 ㎡ ) Sapporo(Japan) 2.9 million Yen Dalian (China) 6.8 million Yen Seoul (Korea) 11 million Yen 6

7. In the Era of High Economic Growth 7

8. New Forays into Europe and US For Domestic Store’s Merchandise Understand Fashion Trend Find New Fashion Brands For Gaisho Customers Loyal Customers → Ethnic Enclave Market 8

9. Ethnic Enclave Market London Mitsukoshi Opened in 1979 Target: Gaisho customers Japanese Tourists Japanese Residents In transition After the 9/11 terrorist attacks in 2001 Tourist Decreased in Number Japanese Economic Depression Expatriate Employee were Younger and Fewer. 9

10. For the department stores’ development Either Close or Change the Strategy Frankfurt and Munich closed in 2008 London expanded customers to include Asian customers. Role of Overseas Branches Domestic Strategy For Loyal Customer For Upmarket Merchandise 10

11. Development in Asian Countries Cater for Japanese Tourists and Residents Hong Kong Adaptation into the Local market Isetan’s Hybrid store in Singapore Mitsukoshi in Taiwan 11

12. For Further Development Did Complementary Strategy for Domestic Market Need Full-scale Global Strategy Asian Developing Countries Decline Population in Japan Yet to Work Out a New Strategy 12

13. Conclusion What Did Globalisation Mean to Japanese Department Stores? Focus on Growing Market and Sales Sufficient Domestic Market Lack of Standardisation Contribute to Heighten the High End Store 13